1 / 47

L’Oreal

L’Oreal. Regional TV Effectiveness Review. June 2011. RTM is the marketing bureau for Regional free t o a ir TV. www.regionaltvmarketing.com.au. Regional TV covers all areas outside capital cities and reaches 36% of population. QLD . DIARY. REG. WA. NNSW . SNSW . VIC . TAS .

makana
Download Presentation

L’Oreal

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. L’Oreal Regional TV Effectiveness Review June 2011

  2. RTM is the marketing bureau for Regional free to air TV www.regionaltvmarketing.com.au

  3. Regional TV covers all areas outside capital cities and reaches 36% of population QLD DIARY REG. WA NNSW SNSW VIC TAS

  4. Regional TV coverage includes large cities and fast growing coastal suburbs Gold Coast Newcastle & Central Coast Canberra Wollongong & Illawarra

  5. Diary markets: A diverse mix of urban and rural Darwin Satellite Regional WA Mildura Griffith Port Pirie/ Broken Hill Loxton/Mt Gambier

  6. Populations of major regional TV markets are comparable with the metros NNSW 2,079 SNSW 1,410 People Source: ATR & OZTAM 2011, Nielsen Media Research 2010

  7. Australian population moving North and to the coast. Over 30% growth in 10 years in some regional areas QLD NSW VIC TAS METRO National average Population Increase: 2001 vs. 2011 Source: ATR & OZTAM 2011

  8. Urbanisation and high population growth changing the profile of regional Australia • Seachange: Baby boomers and young families • Lower cost of living and lifestyle are main attractions • Rural populations moving to regional hub towns • Less than 4% of households depend on farming

  9. Seachange… … for baby boomers …for families

  10. “Typical” SeachangerRyan, 36. Wollongong NSW Made the seachange from the “Shire” to the “Gong”. Owns a small business in building trade Above average income & primary focus is kids and lifestyle. Loves footy , cars and teaching kids surfing.

  11. Regional consumers can be main growth driver for L’Oreal during next 12-18 months Two years of sales and advertising response prove regional can contribute up to 40% of growth Relatively small realignments of TV spend to regional have made a positive impact for L’Oreal and key rivals Regional consumer spending is leading the recovery – greater affluence in regional – 40yrs + key growth demo

  12. Regional consumers have similar demographic profile to metro Source: Roy Morgan Single Source (12mths to Dec 2010)

  13. Regional willingness to spend been very consistent through GFC and in 2011 still positive vs. national downward trend Regional +9% YOY $ Spent per $1000 -12% YOY Metro Dollars allocated for spending from discretionary $1000 Source: foreseechange 2005 – 2010: annual average, 2011: June 2011 survey

  14. The important Profligate Spender group has increased since late 2010 in regional while declining in metro Metro Regional % of Pop. Profligate spenders are people both willing and able to spend % Pop. who are profligate spenders Source: foreseechange 2005 – 2010: annual average, 2011: June 2011 survey

  15. Doubling in number of wealthy people living in regional Australia in past five years People 18-54 with HHI $130k+ or Investments $500K+ Source: Roy Morgan Single Source (12mths to Sep 2010, 2009, 2008, 2007, 2006, 2005 )

  16. Why has regional spending been more stable and the outlook more positive? • Lower cost of living – less debt • Huge investment in infrastructure • Population growth driving development of local economies • Resources growth impacting many parts of regional: NSW, QLD, WA, SA.

  17. Culturally Australia is a divide nation: Regional is representative of the dominant suburban lifestyle YouthfulTechnologicalEnergetic Upwardly MobileMaterialistFamily Focused Outer Metro 41% PragmaticFunctionalPatriotic InnerMetro 23% Regional 36% ExperientialInternationalLibertarian PracticalCommunitarianSelf Reliant ConservativeInstitutionalSelf-Controlled

  18. According to David Chalke social researcher…. www.regionaltvmarketing.com.au

  19. 3 3 % of all Skincare sales are from regional consumers Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  20. Total Skin care sales for Sept 2007 to July 2008 – Regional is 33%+ of national sales Total Skin Care category sales: Sept 2007 to July 2008 Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  21. During FYR ‘08 L’Oreal had same market share in regional as metro Brand shares of total category sales: Sept 2007 to July 2008 Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  22. In the prior year (’07) L’Oreal had higher share in regional – Olay main beneficiary Brand shares of total category sales: Sept 2006 to Aug 2007 Source: Scan Data (4 W/E 3/09/06-02/09/07) Coles /Woolworths/Bi Lo (excluding NT)

  23. 3 3 % of national L’Oreal sales are to Regional women Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  24. L’Oreal DE regional sales are 33% of national but Reg. NSW bigger than Brisbane Total L’Oreal Dermo Expertise Skin Care sales: Sept 2007 to July 2008 Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  25. L’Oreal BDI in Regional NSW is 11% above national average – growth opportunity in QLD L’Oreal Dermo Expertise share of total skin care category sales: Sept 2007 to July 2008 Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  26. L’Oreal DermoExp.regional BDI is very sensitive to relative weight of TV investment 2008 Jan-Jun Total TV: $2.0m Reg share: 14% 2007 Jul-Dec Total TV: $2.4m Reg share: 11% 4 W/C Period Dermo Expertise share of total sales vs. TV Spend Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  27. R O I 3 x Cost efficiency and ROI from L’Oreal regional TV is 3 times better than metro TV Source: Aztec/Nielsen, Sept 07 – July 08 Grocery channel

  28. Olay market share in regional lagged metro until Nov ‘07 when regional share of TV budget grew TV spend p/month Category share by value Jan-Oct 2007 TV Spend: $5.8m RTV share: est. 4% Nov ‘07 –Jun ‘08 TV Spend: $2.7m RTV share: est. 16% 4 W/C Period Olay share of total sales vs. TV Spend Source: Scan Data (4 W/E 16/9/07 to 22/06/08) Coles /Woolworths/Bi Lo (Excludes NT)and NMR AdquestMillenium

  29. 0 4 % Of Olay national sales growth came from realignment of TV budget to regional … and 3 times rate of ROI Based on 4pt growth to June 2008 in RTV markets and 3pt growth in metro markets for 12 months sales of Olay brand Sources: Aztec/Nielsen, Retail World , AdquestNov 07 – June 2008

  30. Regional women 30+ more likely to have children but still very involved with skincare Source: Roy Morgan Single Source (12mths to December 2008)

  31. Wrinkle Decrease regional BDI grew relative to metro in ‘08 with RTV share 2008 Jan-Jun Total TV: $335k Reg share: 17% 2007 Jul-Dec Total TV: $1.1m Reg share: 11% 4 W/C Period L’Oreal Total Wrinkle Decrease share of total sales vs. TV Spend Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  32. Collagen Definer product highly responsive to TV and RTV share of budget 2008 Jan-Jun Total TV: $335k Reg share: 17% 2007 Jul-Dec Total TV: $1.1m Reg share: 11% 4 W/C Period L’Oreal Collagen Definer share of total sales vs. TV Spend Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  33. Total Wrinkle Decrease sales for Sept 2007 to July 2008. Regional is 33% of total L’Oreal total Wrinkle Decrease skin care sales: Sept 2007 to July 2008 Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  34. Australian women 40+ have same profile regardless of location Source: Roy Morgan Single Source (12mths to December 2008)

  35. DE Revitalift sales show skew to regional equal 35% + of national value Dermo Expertise total Revitalift skin care sales: Sept 2007 to July 2008 Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  36. Regional women very responsive to Revitalift TV 2008 Jan-Jun Total TV: $694 Reg share: 15% 2007 Jul-Dec Total TV: $911k Reg share: 12% 4 W/C Period L’Oreal Total Revitalift share of total sales vs. TV Spend Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  37. Regional women 55+ are affluent consumers and just as engaged with skincare Source: Roy Morgan Single Source (12mths to December 2008)

  38. Regional women highly responsive to Perfect and Re-Perfect TVC’s 2007 Jul-Dec Total TV: $1.04m Reg share: 10% 4 W/C Period L’Oreal Age Perfect & Re-Perfect share of total sales vs. TV Spend Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  39. Total Age Perfect & Re-Perfect sales. Regional is 36%+ of total L’OrealTotal Age Perfect & Re-Perfect skin care sales: Sept 2007 to July 2008 Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  40. Regional sales in the growing 55+ segment are 40%+ of national value Reg. NSW was no.1 market by value in FYR ‘07 for Re-Perfect L’OrealTotal Age Perfect & Re-Perfect skin care sales: Sept 2007 to July 2008 Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  41. Garnier Re-Density: Reg. NSW is No. 1 market and total Reg. almost 40% of national Garnier Re-density sales: Sept 2007 to July 2008 Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  42. Garnier: Grew YOY & higher regional BDI shows long term RTV investment (15%+ avg.) TV spend:$2.7m RTV share: 15% 4 W/C Period Garnier share of total sales vs. TV Spend Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  43. STV test for Neutrogena in Reg. QLD generated minimal response vs. Free RTV QLD STV Only 4 W/C Period Neutrogena Rapid Clear share of total sales vs. TV Spend Source: Scan Data (4 W/E 16/9/07 to 20/7/08) Coles /Woolworths/Bi Lo (Excludes NT)

  44. Regional share of skin care category TV grew in FYR ‘08 Period: Jan to Dec 2008 Category: Food (Dairy & Dairy Substitutes) & Beverages (Milk) Source: Nielsen Media Research AdEx Category: Skin Care - All

  45. Regional TV CPM rates are half metro equivalent – guarantees higher ROI Index TV market CPM indices National average CPM P18+ = 100 Source: Regional TV Agency Survey 2008

  46. A relatively small realignment of TV $ to regional - circa 20% share will deliver higher growth and ROI Regional NSW and QLD are clear opportunities for growth L’Oreal mature age brands should be returning 40% of sales from regional women Ideal time to target regional as consumers increase discretionary spending

More Related